Armored vehicles chart biggest growth

WASHINGTON, June 9 (UPI) -- Spending by the Pentagon grew in 2007, with the biggest growth in contracts from the U.S. Defense Department going to companies producing armored vehicles.

A policy brief released by the New America Foundation analyzing the Top 10 defense contractors with the U.S. government found that companies involved with the production of mine-resistant ambush-protected vehicles, among other armored transportation, had the biggest growth in Pentagon prime contract awards.

At the top of the list, with the biggest increase in defense contracts over fiscal year 2006, was BAE Systems, which recently purchased MRAP producer Armor Holdings Inc. Pentagon awards for BAE grew from $4.7 billion in 2006 to $9.8 billion in 2007.

Second highest in contract gains was General Dynamics, a producer of tanks and tracked combat vehicles. Sales of armored vehicles were more than half of the company's $4.1 billion increase in sales over 2006.

Overall, Pentagon awards grew by 4.3 percent in 2007, largely as a result of the ongoing costs related to the wars in Iraq and Afghanistan. The report indicated that the defense spending in response to the evolving threat from improvised explosive devices resulted in a major focus shift to MRAP vehicles in an effort to protect soldiers.